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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Donors sought as field project deadline looms ... UCC victims included teacher, teens and adults seeking new starts ... UPDATED: Names of UCC shooting victims released ... Donors sought as field project deadline looms ... UCC victims included teacher, teens and adults seeking new starts ... UPDATED: Names of UCC shooting victims released ... SALEM Oregon Supreme Court overturns key PERS savings Said Legislature erred in scaling back benefits Comment MailTribune.com Writer Posted Apr. 30, 2015 at 9:49 AM Updated Apr 30, 2015 at 3:53 PM Posted Apr. 30, 2015 at 9:49 AM Updated Apr 30, 2015 at 3:53 PM » Social News SALEM (AP) — The Oregon Supreme Court ruled today that some of the 2013 cuts to public-employee retirement benefits are unconstitutional, wiping out much of the savings lawmakers were aiming for and likely raising pension costs for state and local governments. The justices said workers were promised an annual inflation increase of up to 2 percent, and the Legislature can't scale it back retroactively. Cities and school districts said they're disappointed in the ruling and warned it will lead to larger class sizes and diminished government services. They called on the Legislature to find new Public Employees Retirement System cuts that might pass muster with the court. "These reforms represented a reasonable means for government employers to manage expensive PERS obligations while still providing an adequate level of desired services to citizens," said Mike McCauley, director of the League of Oregon Cities. After the Great Recession took a massive bite out of the pension system's investments, state and local governments faced a big hike in their employee pension costs. Former Gov. John Kitzhaber brokered a deal to cut benefits while raising taxes on mostly wealthy taxpayers and cutting them for certain businesses. The pension cuts reduced the cost-of-living adjustment, or COLA, from a maximum of 2 percent to 1.25 percent on the first $60,000 in retirement payments and 0.15 percent on anything higher. Retirees living outside Oregon lost a supplemental payment intended to help cover income taxes. The justices ruled the supplemental tax payment was not a contractual guarantee so the Legislature was free to take it away. But the COLA could not be reduced for any work done before Oct. 8, 2013, when the law took effect. MailTribune.com Writer Posted Apr. 30, 2015 at 9:49 AM Updated Apr 30, 2015 at 3:53 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... Business Name address Location, ST | website.com Find Southern Oregon Attractions Bars Restaurants Beauty Salons Entertainment Doctors Medical Specialists Contractors Education Lawn Services Lawyers Shopping Travel Tanning Used Cars Wedding Services ▼ Add your business here + Events Calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2015 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501